JPMJPMorgan Chase

Year ended (in millions) December 31, (in millions) December 31, 2025 2024 Total stockholders’ equity $ 362,438 $ 344,758 Less: Preferred stock 20,045 20,050 Common stockholders’ equity 342,393 324,708 Add: Certain deferred tax liabilities(a) 2,916 2,943 Other CET1 capital adjustments(b) (198) 4,499 Less: Goodwill(c) 54,082 53,763 Other intangible assets 2,560 2,874 Standardized/Advanced CET1 capital at December 31, 2023 $ 250,585 Net income applicable to common equity 57,212 Dividends declared on common 288,469 275,513 Add: Preferred stock (13,786) Net purchase of treasury stock (17,801) Changes in additional paid-in capital 783 Changes related to AOCI applicable to capital: Unrealized gains/(losses) on investment securities (87) Translation adjustments, net of hedges(a) (858) Fair value hedges (87) Defined benefit pension and other postretirement employee benefit (“OPEB”) plans (63) Changes related to other CET1 capital adjustments(b) (385) Change in Standardized/Advanced CET1 capital 24,928 Standardized/Advanced CET1 capital at $ 275,513 December 31, 2024 20,045 20,050 Less: Other Tier 1 adjustments 884 682 Standardized/Advanced Tier 1 capital at December 31, 2023 $ 277,306 Change in CET1 capital(b) 24,928 Net redemptions of noncumulative perpetual preferred stock (7,354) Other 1 Change in Standardized/Advanced Tier 1 capital 17,575 Standardized/Advanced Tier 1 capital at December 31, 2024 307,630 $ 294,881 Standardized Tier 2 capital at December 31, 2023 $ 31,191 Change in long-term Long-term debt and other instruments qualifying as Tier 2 (1,467) Change capital $ 13,539 $ 10,312 Qualifying allowance for credit losses(d) 23,733 20,992 Other (1,059) (596) Standardized Tier 2 capital $ 36,213 $ 30,708 Standardized Total capital $ 343,843 $ 325,589 Adjustment in qualifying allowance for credit losses(b) 890 Other 94 Change in Standardized losses for Advanced Tier 2 capital (483) Standardized Tier 2 capital at December 31, 2024 $ 30,708 Standardized Total capital at December 31, 2024 $ 325,589 capital(e)(f) (14,881) (13,691) Advanced Tier 2 capital at December 31, 2023 $ 18,111 Change in long-term debt and other instruments qualifying as Tier 2 (1,467) Change in qualifying allowance for credit losses(b)(c) 279 Other 94 Change in Advanced Tier 2 capital (1,094) Advanced Tier 2 capital at December 31, 2024 21,332 $ 17,017 Advanced Total capital at December 31, 2024 $ 328,962 $ 311,898

New competitors in the financial services industry continue to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including electronic securities and cryptocurrency trading, lending and other extensions of credit to consumers, payments processing and online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk that of disruption to payments processing and other products and services, including deposits and other traditional banking products, could be significantly disrupted by services from the use of new technologies, such as cryptocurrencies and other applications using secure distributed ledgers, technologies that may not require intermediation. intermediation, such as tokenized securities or other products that leverage distributed ledger technology. New technologies have required and could require JPMorganChase to spend more increase expenditures to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. If JPMorganChase does not keep pace with rapidly changing technological advances, including the adoption of generative AI, it risks losing clients and market share to competitors, which could negatively impact revenues, operating costs and its competitive position. Competition could be intensified as the feasibility, capability and scalability of new technologies improves. In addition, new technologies may (including generative AI) could be used by customers, customers or bad actors in unexpected or disruptive ways, or could be breached or infiltrated by third parties, in unexpected ways, which can could increase JPMorganChase’s costs for complying with laws, rules compliance expenses and regulations that apply reduce its income related to the offering of products and services through those technologies and reduce the income that JPMorganChase earns from providing products and services through those technologies.

In addition, the Firm has been was named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In actions related to U.S. dollar LIBOR during the period that it was administered by the BBA, September 2025, the United States District Court for the Southern District of New York granted class certification summary judgment in favor of antitrust the defendants on all remaining claims related to bonds and interest rate swaps sold directly by the defendants, including the Firm. The Firm has obtained dismissal of certain actions and resolved certain other actions, and as to all remaining actions has moved for summary judgment. In addition, a lawsuit filed by a group of individual plaintiffs asserting antitrust claims, alleging that the Firm and other defendants were engaged in an unlawful agreement to set U.S. dollar LIBOR LIBOR, decertified the class, and conspired dismissed all claims in their entirety with prejudice to monopolize the market for LIBOR-based consumer loans and credit cards was dismissed in October 2023 and affirmed on appeal by the United States Court of Appeals for the Ninth Circuit in December 2024. The Firm has resolved all non-U.S. dollar LIBOR actions. refiling. Plaintiffs have filed an appeal.

The guidance expanded the types of tax-oriented investments, beyond affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method. This method requires the cost of eligible investments, within an elected program, to be amortized in proportion to the tax benefits received with the resulting amortization reported directly in income tax expense, which aligns with the associated tax credits and other tax benefits. Eligible investments must meet certain criteria, including that substantially all of the return is from income tax credits and other income tax benefits.